Thursday, April 21, 2011

Tricubes - 500% increase in 3 days. Seriously, do I look like I am stupid?

After the announcements of the 1Malaysia email project with the Economic Transformation Programme which they claim that they are going to spend RM50 million, its shares rose by more than 500% - from RM0.05 to now RM0.35 within 3 days! Market cap - rose from RM7 million to RM48 million. Its book value is still below RM5 million while the initiative is being announced. Not that what they announced would immediately bring to your mind - ya, I know what they are trying to do - and if they execute it well, it may worth some few hundred millions to the company. NO!

While trying to understand why people will bother to have another so-called secured email for the receipt of EPF, IRD etc statement, its shares continued to rise. While on the other camp, through Facebook and Twitter, Malaysians continue to condemn the initiative - I am trying to comprehend what kind of value-add can Tricubes bring via the 1Malaysia email. Is it really that great, I mean I already received notices from IRD, Telekom, Celcom, Maxis etc through my gmail. Is gmail not secure? Then Google - you better be careful because even though your market cap is USD200 billion, and never mind if you have spent few hundred million in your gmail initiative, you may lose out to this little company in Malaysia. Google! Do you know that security is upmost important to an email account holder? Maybe Google does not know that and is not as good as Tricubes when comes to email securities. But hey, I looked through Tricubes' website, it has never mentioned anything about internet security being its core competency. Maybe by spending a couple of a million ringgit in research that competency can be acquired. Not bad...

Then I thought of MYEG which is now about RM430 million market value (which I have admitted the company really has value and its current and future initiatives bringing e-government services can be attractive). Then again, I think (not very hard) of Tricubes. I could not really get what they are trying to bring in terms of value that really immediately creates a RM40 million value to the market. But people are punting the stocks. Please be careful, that's what I can only advise on.

You do not want at the end of the day the directors and several bookmakers make money from that while the layman suffers.

p.s. another thing about this company that still causes me to wonder, how is it by announcing that they are spending RM50 million will cause the company to increase its value by RM40 million over 3 days. I think I will do the same thing - announce only mah!

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